Jupiter Blocks XRP ETP Amid Regulatory Confusion: FT
Jupiter Asset Management’s compliance division recently blocked one of its funds from retaining exposure to an XRP exchange-traded product (ETP).
The compliance team highlighted inconsistent EU regulation, according to a report by FT. The incident demonstrates how divergent national rules create confusion for managers exploring crypto participation.
- Jupiter was blocked from holding XRP ETP in Irish fund by compliance.
- Germany allows crypto ETPs, but Ireland prohibits UCITS vehicles.
- EU reviewing standards as asset managers push for clarity
Read more: U.S. Authorities Can Control Tether (USDT): JPMorgan
Jupiter Closed Ripple XRP ETP Trade At A Loss
Per the FT report, Jupiter’s $565 million Gold & Silver Fund invested over $2.5 million into an ETP tracking Ripple’s XRP cryptocurrency during the first half of 2023.
However, the position violated Ireland’s stance on crypto assets within retail-focused UCITS funds. Jupiter closed the trade shortly after at a minor loss following routine oversight.
“The trade was made, picked up by our regular oversight process, and then cancelled,” the spokesperson added.
Read more: Lazarus Group Shifts Crypto Money Laundering Technique: Report
At the same time, German asset manager DWS includes exposure to an Ethereum ETP in one UCITS fund, given looser domestic standards. The lack of common guidelines allows the same securities to qualify in one EU jurisdiction but not another.
Irish regulators argue crypto assets don’t align with UCITS goals of preserving capital and providing sufficient liquidity. Retail investors can access crypto markets through alternative structures. However, the patchwork approach complicates efforts by managers to assemble EU-wide fund products.
For now, funds trading cross-border must tailor country-specific rules to comply with local requirements. However, the regulatory tension over digital assets shows why a uniform methodology would aid the cryptocurrency market.
